Evening star. [volume] (Washington, D.C.) 1854-1972, 1887-05-19
I'd EDITION.
Latest kilograms to The Star.

MIR. GOULD KEEPS 1T Up
He Defends the Consolidated Mortgage
Trustees from the Charges Of Unfalth.
fulness.
NEW YORK, May 19.-When the Pacific Railway
commission got to work this morning Jay Gould
resumed the witness stand, and the inQuisition
was continued by Commissioner Anderson. He
testified that the provisions OF the consolidated
mortgage trust were strictly complied with by the
trustees and the bonds issued therein provided.
Mr.. Gould was shown transcript OF transac-
lions In the consolidated bonds furnished by the
cate that the Trustees had not followed the trust.
MIR. Gould said that was Union Pacific account
Of off, which he knew nothing; that the true way to
the trustees, kept by Mr. Cale who could be got to
make the necessary explanation. "The trustees
only charged the amounts named In the mortgage
The accounts you show are OF negotiations with
the Union Pacific, and they could get their own
prices. You will ind that the accounts OF the
trustees
WILL BALANCE WITH THE MORTGAGE.
Maxwell & Graves, to whom many OF these
bonds were issued were the brokers Of a st. Louis
explanation Of the transactions with these brokers'
Is that the Union Pacific first acquired
title In the lands from the trustees and then dis
posed OF them. The provisions Of the mortgage
proMpits the requirement OF the bonds OF the
trust by the Kansas Pacific and the trustees would
certainty treat the successor company, the Union
racine, as though 1t were the Kansas Pacific
Where the Commission is mixed up Is that 1t Is
trying to get at the dealings OF the trustees
through set OF accounts of the Union Pacific,
which the trustees had nothing to DO with. The
trustees dealings were not entirely with the Union
Pacific, but
-, THE PRICE OF THESE BONDS WENT UP so HIGH
Inat HOlderS would not convert and the Union
Pacific went on the market and purchased them
for conversion at the best prices they could My
recollection is that the bonds bought by Mr.. Sage
and myself were secured from the Union Pacific.
never dealt in any Of these securities underlying
tne trust put them in at the rate mentioned,
oh vr,t fc fa1$
Mr.. Anderson said that he could not inquire H.
telgently with reference to the commission OF the
trust securities without the accounts kept by Mr..
. MI Gould gave Sergeant-At-Arms Walsh note
uiIectlng Mr.. Calef to appear before the commits
bonds.
Mr. LIrTLKR TAKES TURN.
commissioner Litter here assumed the charac-
ter and duties Of inquistor. The witness said the
total Indebtedness OF the Union Pacific Rail-
road Company December II. 1873. was $685.
bonds. ''Ihe outstanding issue Of stock at that
time was $50, 762, 300. The Indebtedness of the
Kansas s1 Pacific at that time was $50 $3.50
Denver Paciric a, OOO, 600 NY holdings in
the 81 Z, ion Pacific were 100000 stock and
a controlling interest at that time Ihad "a, oOO,-
600 Kansas Pacific stock and about s., 100000 in
bonds Iowned the Missouri Pacific at that time.
BY releasing the 81, OOO, 900 Denver Pacific bonds
we MADE the consolidated mortgage for
100000 less. The outstanding consolidated
DERIVING bonds nave been converted the trust win
have issued all Of the consolidated bonds. The
Union Pacific Railway Co. became the owners OF
datiOn and issued g. 600 900 OF its own stock in
place OF It, They used s. 49, 40 OF this stock
TO pay me.
OF tne issuing OF this stock was to increase the
Indebtedness of the Union Pacific, and the Denver
Pacific stock is not an important factor IN the
could have been made just as well without refer
ence to them At the time Of the consolidation
interest, and was In position to dictate the
terms Of the consolidation. My holdings in
kansas Pacific at the time amounted TO s., O5s,-
U4.o0. didn't lose any money by the cOnSOlida-
ton, nor did make any, for the securities were
ton"
terest in the stock Of the Union PACING and
1878 and 1880, nor did we control the market BY
5 tie s. stock ., Ny Ny holding remained about
1 IN s 5eat tde 9
member when 1t stopped. 1t never paid dividends
except In accordance with the charter provisional
ee the Would d n 1os Sa1s
hesitated in granting an extension Of time in pay
ing the subsidy loan, though the road were paying
fort 1t.
With reference to the building OF telegraph
line along the road as provided by the act OF Con-
gress Judge Dillon explained that the Union Paci.
nc CO. built the line as required, but that it is now
used by the Western Union, which pays certain
percentage on business over the wire under con-
tract.
Mr.. GOULD's OPINION OF THE INTERSTATE BILL.
Mr.. Littler here branched OF from the subject OF
investigation to ask for his own Information Mr.
Gould's opinion with reference to the Interstate
commerce bill
Mr.. Gould said: ''There is a great deal of good
and some bad In 1t. haven't asked the Commits
sion for any change yet. 1 should rrefer to wait
year or two before giving any definite opinion
A NEW SENATOR FROM FLORIDA.
Samuel PascO Elected on the Ballot 1t
TalIahassee to-day.